Sichuan Express(SH:601107) Huachuang Securities·2024-03-16 16:00Investment Rating - The report maintains a "Strong Buy" rating, expecting the company to outperform the benchmark index by over 20% in the next six months [6][13]. Core Insights - The company has announced a shareholder return plan for 2023-2025, committing to distribute at least 60% of the net profit attributable to the parent company as cash dividends, significantly increasing from an average of 31% in 2020-2022 and 40% in 2022 [18][31]. - The report emphasizes that this increase in dividend payout is a strategic move to enhance shareholder value and is expected to positively impact the company's market valuation [7][31]. - The company aims to achieve a cumulative net profit of no less than 7.69 billion yuan from 2023 to 2027, with specific annual targets set for 2023-2025 [3][27]. Financial Summary - The company’s projected operating revenue for 2023 is 11.785 billion yuan, with a year-on-year growth rate of 19.0%, and is expected to reach 13.043 billion yuan by 2025 [16]. - The net profit attributable to the parent company is forecasted to be 1.163 billion yuan in 2023, increasing to 1.382 billion yuan by 2025, reflecting a growth rate of 52.6% in 2023 [16][14]. - Earnings per share (EPS) are projected to be 0.38 yuan in 2023, increasing to 0.45 yuan in 2025, with corresponding price-to-earnings (P/E) ratios of 14, 12, and 12 for the respective years [16][14]. Strategic Developments - The acquisition of the Chengdu Second Ring Expressway Company has been completed, enhancing the company's sustainable development capabilities and expanding its road network [8][54]. - The company is actively pursuing market value management and aims to establish a positive market image through improved investor relations and capital operations [58].